The risk of unforeseen material and financial losses due to various kinds of transactions increases together with the increase of complexity of financial and economic activities of a commercial company. So, it is generally accepted that formation of reserves contributes to minimizing the risk of losses caused by management decisions. However, nowadays there is another kind of uncertainty in the theory and practice of accounting, namely an uncertainty of the concept and content of a backup system, what leads to lower levels of validity and reliability of the information contained in financial statement . The article, along with an analysis of regulatory documents and statements made by other authors, submits the author's opinion on accounting reflection of a company's reserve system.
Keywords: deposit, net profit, reserves, reserve capital, estimated capital, other comprehensive income, commitment, assessment, fair value
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